The following budget form is largely based on information from a pre-marriage program developed for married Muslim couples by Muslim counselor Shahina Siddiqui, executive director of the Winnipeg, Canada-based Islamic Social Services Association (ISSA).

The Sakrs have had enough of living paycheck to paycheck and they want to start planning how they spend their money. They are a family of five: Mr. Sakr (the dad), Mrs. Khadr (the mom), Aneesa (7 year old daughter), Ameen (5 year old son) and Alia (2 year old daughter).

1. They first determine their family income:

Mr. Sakr is the main supporter of the family. He earns $50,000 a year (after taxes).

Mrs. Khadr works part-time and has generously agreed to devote her salary to her family (although she is not obligated to Islamically). She earns $10,000 per year (after taxes).

They have no other income.

Monthly income is $60,000 divided by 12=$5000.00

2. Then they have to list all of their expenses:

a. They subdivide this into three big categories: essential (what they need to survive), non-essential (what is not as necessary to survive) and savings.

The essentials are usually easier to do if there is a set amount that must be given monthly or weekly, like rent, which is paid monthly.

If the figure is yearly, they simply take the figure and divide it by 12 to get the monthly average. For example, Aneesa and Ameen's Islamic school fees are paid at the beginning of the school year. The fee is $5,000 per student. In the Sakrs case, what they would do is take $10,000 and divide by 12 (which comes out to $833.33 per month on school fees).

personal insurance
since they are living in an apartment......$100.00
the Sakr have to pay this

Education expenses
for Aneesa and Ameen's Islamic school fees $833.33
registration for Islamic conferences.........$50.00
books for a home library.....................$20.00
school supplies................................$30.00

What is left for non-essentials then is:....$5000.00
.............................................. -$3973.33
_________________________________________
................................................$1026.67

1. See a chartered accountant and go over the budget with them. They can help you identify areas where you can save.

2. Be on the lookout on how you can save to put more into your savings and investments. It does not have to be a drastic step. Changing shampoo or detergent brands, reducing the clothing budget to the essentials, these are some ways you can cut costs.

3. Be flexible. Having a budget does not mean rigidly setting aside exact proportions always. If for instance, one month, the laundry machine is broken but the kids need new winter boots, the kids boots take priority, and the laundry machine will have to wait. You can get your laundry done at the local laundromat.

4. Have everybody in on the budget depending on their age. Encourage kids to see ways they can cut costs in their activities or recreation, for instance. Or encourage mom to take up walking instead of paying a lot of money to join an all-women's swim club if it's getting too expensive. Encourage dad to cut television viewing by cutting off cable.